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This episode breaks down how a Quality of Earnings report strengthens trust, enhances transparency, and sets the financial foundation for a successful business sale in the Canadian mid-market. You’ll learn why validating the sustainability of your earnings is essential and how a well-prepared Q of E can reduce surprises, ease buyer concerns, and support a higher valuation. The discussion highlights how this analysis goes beyond traditional accounting to reveal the proper drivers of performance that matter most to serious buyers.

Listeners will gain clarity on how to select the right accounting firm, what information you’ll need to provide, and the key components analyzed in a Q of E, from revenue verification to EBITDA normalization and working capital expectations. The episode also explores the importance of timing the report and how addressing Canadian-specific considerations, such as ASPE or IFRS standards, provincial tax nuances, GST or HST obligations, and LCGE eligibility, can significantly influence buyer confidence and negotiation outcomes.

By understanding the purpose, scope, and strategic value of a Q of E report, business owners will be better prepared to present accurate financials, streamline due diligence, and position their companies for stronger offers. This episode helps you approach the sale process with clarity and credibility, reducing friction while boosting investor trust. Explore more insights, guides, and resources at www.Shaughnessy.Group

You're listening to The Shaughnessy Group Podcast—insights on buying, selling, and growing Canadian businesses in the lower-middle market.
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46 episodes